Ukraine’s is known around the world for it’s booming agricultural industry. Here is a look at their major trade partners and how impactful the war in Ukraine may be on the world economy…
Ukraine’s largest trading partner is China. This is no surprise since nearly every countries biggest trade partner is China these days. The trade relationship between Ukraine and China is a strong one because it makes up nearly 50% of Ukraine’s imports and exports.
Ukraine makes up nearly 15% of global grain production which could be alarming should a significant amount of this grain production be taken offline by the conflict. Food prices will likely rise around the world with lower production coming out of Ukraine and higher oil prices as a result of trade disputes between Russia and other nations.
In the grand scheme of things Ukraine makes up a small portion of the global economy. In total in 2019 it produced $49 billion of total exports. For reference, in 2021 global trade totaled $28.5 trillion.
Interestingly, Ukraine’s global trade peaked in 2012 at over $150 billion and has been falling ever since.
While this is a very complex situation with many knock on effects yet to be fully understood, it is important to know that the global economy is resilient and highly adaptive.